As Ofgem announces higher energy bills from July, households
could save £823 a year by installing solar panels and batteries
on their homes, according to analysis from the New Economics
Foundation (NEF), out today. Energy bills are due to rise, but
almost 44% of an annual energy bill under the price cap could be
avoided with the installation of home solar power.
Yesterday Ofgem announced that from July the energy price cap
will increase by over £200, from £1,641 to £1,862 a year. Energy
bills will rise due to fossil-fuel supply being disrupted by the
US war on Iran and the closure of the Strait of Hormuz.
But today's analysis shows that installation of home renewables
like solar power, backed by batteries and smart tariffs, can
significantly soften the blow of higher energy bills to the tune
of hundreds of pounds a year. However, the installation of these
technologies can run up to £10,000 for a typical household,
meaning it is out of reach for many.
Chaitanya Kumar, head of economy and environment at NEF, said:
“Trump's attacks on Iran are again showing us how exposed the
UK public is to energy price shocks. More and more households are
turning to solar panels to power their homes. But the high
upfront cost remains a barrier to millions. With energy bills
about to rise, this government needs to act now to insulate
households from the worst impacts, including through low or
zero-interest loans, solar on subscription and accelerating the
installation of solar panels on council homes. ”
Household savings from rooftop solar panels and batteries will
vary, depending on the direction that rooftops face. But smart
battery installation will ensure that even households with
north-facing roofs will save significant amounts:
- South-facing roofs will save £823
- East/west-facing roofs will save £728
- North-facing roofs will save £602
NEF is urging the government to accelerate the rollout of solar
and battery technologies to households through bringing the
target to have 5 million homes with rooftop solar forward from
2030; launch the promised low-interest loan scheme for households
to install low-carbon technologies at home; and encourage
no-upfront-cost models like solar-on-subscription so low-income
households can afford home solar power
